"Our Markets opened with positive gap and went up continuously through out the session, due to short covering in heavies, closed firmly above 20DSMA which was offering stiff resistance for the past few weeks. The next major hurdle comes at 50DSMA placed at 4360.88 (Nifty) & 14893.63 (Sensex) for today. The up move in the derivatives settlement week is no confirmation of any trend reversal as the roll over of short positions give such relief rallies.Nifty futures discount is just 5 points for August series wheras the same is 26 points for September and 39 points for October series. Thus, one should be cautious in taking longterm veiw as we approach the 4360 & 14900 levels on Nifty and Sensex today.
US markets were subdued yesterday on surfacing of negative cues relating to home sales data and its effect on economy etc., and closed negative. Our markets will be volatile today, as alternate bouts of roll over of short and long positions takes place today to next series. Traders can consider going long on 4200 calls on weakness and 4000 puts on rallies for quick returns today.
The day's range for Nifty shall be 4200(Support) and 4360 (Resistance); Sensex shall be 14425 (Support) and 14980 (Resistance)
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